Does Michigan have a rule on how fast dispensaries must pay cannabis brands?

Not as of 10/27/2026. We found no Michigan rule that sets payment terms or credit limits between cannabis licensees, so the contract and invoice terms govern.

Can Michigan deny a cannabis license for unpaid invoices?

It was proposed, not adopted. The Cannabis Regulatory Agency's 2025 draft rules would have allowed it to deny or decline to renew a license over a civil judgment for unpaid cannabis-industry bills. The revised draft posted for the CRA's 2026 hearing does not appear to include that language, and the rules were not final as of our check.

Does a Michigan licensee have to report a court judgment against it?

Yes. Under the current rule R 420.802(4)(a), a licensee must notify the CRA within 3 business days of becoming aware of civil judgments against it.

What can a Michigan brand do about a dispensary that won't pay?

Rely on your contract: put the due date on every invoice, follow up on a schedule, stop shipping on credit to stores that don't pay, and talk to your attorney about court if the balance is large.

Is this legal advice?

No. This page explains public rules and proposals in plain English. Check with your own attorney before you act on it.

Michigan Cannabis Wholesale Payment Rules

Michigan has one of the busiest cannabis wholesale markets in the country, and plenty of brands with invoices months past due. For a while it looked like the state would act: in 2024 and 2025, the Cannabis Regulatory Agency proposed rules that tied a store's license to whether it paid its bills. Here's what was proposed, where it stands, and what actually applies today.

What applies today

As of October 2026, we found no Michigan rule that sets payment terms, credit limits or a delinquent list for sales between licensees. Your contract and invoice terms govern.

One current rule matters if you ever win in court. Michigan's marihuana rules require a licensee to tell the CRA about civil judgments against it:

Mich. Admin. Code R 420.802(4)(a) · current rules

“A licensee shall notify the agency within 3 business days of becoming aware or within 3 business days of when the licensee should have been aware of any of the following: (a) Criminal convictions, charges, or civil judgments against a licensee in this state or any other state, federal, or foreign jurisdiction.”

That doesn't make a store pay. It does mean a judgment you win against a licensee is something the store has to report to its regulator.

What the CRA proposed

The CRA's rewrite of the marihuana rules (rule set 2023-25 LR) included a new reason to deny a license. Its own summary of proposed changes put it this way: allow the CRA to deny a license or license renewal based on civil judgments or court orders resulting from unpaid debt for work, services, products, or equipment provided solely in the cannabis industry, because "this will help ensure that licensees are paying bills and will address a concern that has been raised by many in the industry."

Draft R 420.11(i) · draft rules dated 03/25/2025 (proposed, never adopted)

“A civil judgment has been entered against the applicant for failure to pay for work, services, products, or equipment provided to the applicant. The work, services, products, or equipment must be directly related to participation in the marihuana industry.”

The CRA's guide to the draft also described a matching nonrenewal rule: the agency could decline to renew a license if a civil judgment had been entered against the licensee for non-payment of an invoice related to a marihuana purchase.

Where it stands

Draft released (11/2024)

The CRA published draft rules and a summary listing the unpaid-debt denial ground.

First hearing (05/06/2025)

The CRA took public comment and received over 700 individual suggested changes.

Second round announced (05/14/2026)

The CRA said it made more than 120 changes, some substantial, and would hold a second comment period and hearing.

Second hearing (07/23/2026)

The CRA scheduled the hearing on the revised draft. In the revised draft posted for it, we could not find the unpaid-invoice judgment language.

As of 10/27/2026, we found no notice that the rewrite was final or effective. If you're counting on the unpaid-invoice rule, confirm with the CRA whether it survives in the final version.

What to do now

Waiting on Lansing

Holding off on follow-up until the state gives you a lever. Meanwhile the invoice ages, the store keeps ordering from someone else, and the balance turns into a dispute.

Using what works today

Clear terms on every invoice, reminders from the day it's due, written promises checked on the date, and a final notice before you ever need a lawyer.

Put the due date on every invoice. If it ever goes to court, that's the first thing anyone asks for.
Follow up on a schedule. Most late invoices get paid when someone asks clearly and keeps asking.
Stop shipping on credit to stores that don't pay. It's the most effective step you control.
If you go to court, know the rule. A judgment against a licensee is something the store must report to the CRA under R 420.802. Talk to your attorney about whether suing makes sense.

Where ShelfSpace fits

You don't have to wait for a rule. ShelfSpace sends invoices and reminders in the brand's name, tracks every promise to pay against QuickBooks, and puts a final notice on the brand's letterhead when an invoice passes its mark.

A pay link on every invoice

Each store gets a standing Pay Now link that needs no login. It rides on the invoice and on every reminder, so paying you is always one click away.

Reminders on a schedule, in your name

Reminders go out on the schedule you pick and firm up as the invoice ages. Your sales rep can be copied on every one.

Promises written down

When a store says it will pay Friday, log it. Reminders on those invoices pause, ShelfSpace checks QuickBooks on the date, and the promise is marked Kept, Kept late, Partly paid, or Missed.

A final notice on your letterhead

Once an invoice passes your mark (60 days late unless you pick another number), send one page with a pay-by date and only the consequences you will really carry out. Reporting the balance to the state regulator is one of the five choices, and all five start unchecked.

All of it shows up in AR Aging, your list of who owes you sorted by how late they are. So when a rule or a court asks what happened, you have the dates: when the invoice went out, what the store promised, whether it kept that promise, and the letter you sent. See the full system on Collections, Promise to Pay and Final Notice.

See how other states compare in our guide to cannabis wholesale payment rules by state, and for the full collections playbook, read how to get paid by dispensaries.

This page explains public rules in plain English. It isn't legal advice. Before you report a store, sue, or change your credit terms, check with your own attorney.

Sources

Sources last checked 10/27/2026. Rules change: confirm the current text with the regulator before you rely on it.

Michigan Cannabis Delinquent Payments: What the CRA Rules Say About Unpaid Invoices

At a glance